Help! Paying money into closed bank account

Goldiegirl

When I worked at the Halifax, any credits that were received for a closed account, were listed on a rejects report, and then they were sent back to the bank that originally made the transaction

I realise that, back in the day, we sent the items back manually, and it's probably automated now. But the principle is the same - if Halifax can't apply the funds to an account, they should send the money back to where it came from.

Whoever you are speaking to at the Halifax is not correct in my opinion. Nat West don't have to ask for the money, Halifax should send it back, as part of the process. I suspect you were told this by Halifax to get you off the phone, as the agent didn't know what else to do which is raise a query with Clearing Dept / inward data/ whatever they call it these days.

I'm sorry this isn't much help, but I sympathise.

treenie01

I have spoken to the Halifax again this morning as well as Westcot (who have taken over the account). Halifax think the money would be paid to Westcot. Wescot say that Halifax wouldn't send the money to them as they actually still hold the account and Westcot just manage the debt (which is why the account was closed). They believe the same as me that if the account is closed on HBOS system then it should reject anything paid into it however they have said that they would get an alert if any money has been received by HBOS. They haven't received it yet but have suggested calling back this time next week if I haven't located the money (i.e. it hasn't been returned to sender).

pmduk

You didn't mention that the Halifax account was closed with an outstanding debt. It's entirely possible that the debt has swallowed the credit and reduced the amount outstanding.

Goldiegirl

Yes, that bit of information puts a different complexion on things.

I think you've just reduced your friends debt by £160.

As you needed to pay your friend £160, it would seem the money would have gone to the account, as it is still open. So your friend has got the money..... He just can't get his hands on it, as it's being used to partly repay his debt

It'd be completely discretionary if the money is returned to you

treenie01

I think this is what has happened to mine. However, Halifax are unable to tell me anything. I spoke to Westcot and they are a bit bemused that Halifax have a system where they can't tell me because they said technically the account isn't closed so therefore shouldn't be closed on their system. I've got to phone westcot again tomorrow to see if the money has turned up.